• 3 minutes Will Variants and Ill-Health Continue to Plague Economic Outlooks?
  • 6 minutes Forecasts for Natural Gas
  • 14 minutes NordStream2
  • 14 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 13 hours Communist China Declared War on the US Long Ago Part 1 of the 2-part series: The CCP's War on America
  • 31 mins China's aggression is changing the nature of sovereignty.
  • 15 hours Delta variant in European Union
  • 3 days Ukrainian Maidan after 8 years
  • 22 hours President Biden’s Nuclear Option Against OPEC+ - Waste of Time
  • 4 days OPEC+ Expects Large Oil Glut In Early 2022
  • 2 days Сryptocurrency predictions
  • 4 days CO2 Electrolysis to CO (Carbon Monoxide) and then to Graphite
  • 4 days Microbes can provide sustainable hydrocarbons for the petrochemical industry
  • 4 days Hunter Biden Helped China Gain Control of Cobalt Mines in Africa

Breaking News:

SPR Tender Attracts Two Foreign Bidders

Florida Startup Offers Solution To Decades-Old Pipeline Puzzle

Florida Startup Offers Solution To Decades-Old Pipeline Puzzle

Florida-based company Trans Caspian Resources…

Oil Prices Rise After Six-Week Losing Streak

Oil Prices Rise After Six-Week Losing Streak

Crude oil has recorded six…

Iran Expected To Approve New Oil Contract Models This Week

It’s expected that Iran will approve a new model for oil contracts on Wednesday that should open the door for foreign investors to help the country reestablish its energy sector.

Oil Minister Bijan Namdar Zanganeh stated Monday: “We are awaiting government approval due to be out on Wednesday. Our priorities will be jointly owned oil and gas fields, as well as those in which we are after improved oil recovery.”

He added that the bulk of investor interest has come from Europe. Iran has spent the last two years looking for foreign investors such as Eni and Total SA to develop its resources. Iran hopes those investments will bring in approximately $50 billion per year.

Before sanctions were ratcheted up in 2012, Iran was producing over 4 million barrels of oil per day. When those sanctions were lifted at the start of 2016, production in the country went from 2.8 million barrels per day to 3.5.

Also on Monday, Zanganeh stated that the oil market was oversupplied, but added that a balance between supply and demand will be restored. According to a Reuters’ survey, OPEC’s output was expected to reach its highest level in recent history with Iraq continuing to pump more crude oil and Nigeria exporting more even with the flurry of militant attacks. OPEC’s output increased to 33.41 million barrels per day last month.

Related: Expert Commentary: Don’t Be Fooled By U.S. ‘Production Gains’

As part of the new contracts, Iran is offering better terms to foreign investors, which needs investors to provide $200 billion in foreign cash.

Zanganeh is confident that the government will approve the new contract models, while Supreme Leader Ayatollah Ali Khamenei said last month that no new contracts would be awarded without necessary reforms.

The Iran Petroleum Contract, which is the name for the new contracts, has already been postponed serval times, when the rivals of President Hassan Rouhani resisted deals that cou¬ld end the buy-back system. European oil majors have stated that they intend to return to Iran if changes are made to the buy-back contracts used in the 1990s, which either resulted in no profits, or in losses for companies.

Lincoln Brown for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News